XRP is DEAD? What Will Happen to Ripple After SEC Lawsuit?

A US lawsuit against Ripple Labs Inc., the issuer of the world’s third-largest cryptocurrency, has sent the value of the XRP currency plunging. Is this the end of xrp?

XRP December

Will ripple continue dumping to the depth of hell, or do you still have a chance to save your bags. Maybe now is a good time to buy XRP?

Xrp has been going down for dramatically in the past few days.

xrp chart one month
From $0.72 on the 24th of November to $0.24 one month later. XRP Has falling like crazy!

Yes, the crypto markets as a whole have taken a bit of a dump, but in the past 72 hours we probably have seen ripple as one of the biggest losers. Let’s take a look at the xrp chart above. XRP has not been able to keep it’s strength from November. From $0.72 on the 24th of November to $0.24 one month later. XRP Has falling like crazy! Is this the bottom? Still the biggest loser, even though all the rest of the crypto market is taking a bit of dump as well.

But what’s causing this well? Check out the latest news on CNN: SEC sues Ripple and two executives for selling XRP crypto: A $1.3 billion illegal security offering.

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The SEC said Ripple illegally marketed XRP (XRPLX), the world’s third-largest cryptocurrency, to retail customers.According to the complaint, Ripple’s chairman, co-founder and former CEO Christian Larsen, and the company’s current CEO Bradley Garlinghouse, raised capital for the business through the sale of XRP in an unregistered securities offering. The failure to register the XRP sales — or qualify for a registration exemption — constitutes a violation of federal securities law, the SEC said.

On its own, doesn’t really have a use case at all, except it’s, simply a speculative token that raises value, and they designed it to pump the price of xrp so that they could then sell it off and turn a profit, so the issue with this is that this turns xrp into a security, and the argument against not being a security is not very strong at all.

So what does this mean? Well, essentially, the impact could be wide-ranging. Several exchanges list xrp in the u.s and by these exchanges listing xrp they would have to be registered as securities exchanges.

So it’s easier for these exchanges to simply de-list xrp then rather register as a security exchange which could really negatively impact the price of xrp. It could crash it completely if many exchanges do decide to de-listed instead of registered security exchanges, which makes sense because it’s easier for them to do that.

How was 2020 for the xrp chart? XRP charts from CoinGecko

Let’s take a look at over the last year. Long unregistered offering of securities. The offering ripple was able to raise at least 1.38 billion dollars by selling xrp without providing the type of financial and managerial information, typically provided in registration statements and subsequent periodic and current filings.

The filing said ripple used this money to fund its operations without disclosing how it was doing so or the full extent of its payments to others to assist in its efforts to develop a use for xrp and maintain xrp secondary trading markets.

So this is all publicly available. You can visit the sec’s website and take a look at the complaint, at least perfectly public. So you visit here, you can see this website, you click on the sec complaint and you can read through it.

Over $1.5 billion worth of XRP (+21.45%) futures contracts have been liquidated since the start of November, per data from analytics provider Bybt. Barely $700 million in liquidated futures contracts were recorded between March and October. 

In November, the price of XRP skyrocketed over 220% to two-year highs just below $0.80 as traders anticipated a scheduled token airdrop event by the Flare Network to all XRP holders. In short, anyone holding XRP would automatically receive a portion of the new Spark token, spurring new buyers to accumulate XRP.

Read Bloomberg’s article

It was how they planned on raising money, and the thing is that it’s not looking good for xrp. It is a security they don ‘ T really have an argument against that, and the problem with that is due to many of the public statements that the founders and the creators of xrp have made over the years.

So at the beginning you can see that Larry Cermak revived a thread from 2018, where you said that this week i decided to look at ripple and whether xrp could qualify as a security based on what ripple executives have publicly said in the past.

So the acc chairman said at consensus, invest in late november that tokens are sufficiently decentralized on no longer securities. That means not one person or group of people controlled supply or control trading and access to asymmetric information.

A fully functional and decentralized network?

Now Ripple Labs will continue to be a regular seller of xrp, while, according to ripple management, the xrp ledger is already fully functional and decentralized network. This statement has been highly contested by industry experts as well, and the reason that this is is if we take a look at this complaint that i had open here and we scroll down and see how much xrp is being sold off.

So, as you can see, the total offering was they’ve sold about 14.6 billion xrp that’s, not dollars. That is xrp that they’ve sold off and you can scroll down and see exactly how much money they’ve made and how much they’ve been selling off over the years without actually providing any use case.

All XRP holders should watch this video by @cryptolove!

So it’s, simply a basically a pump and dump scheme a way for the company to make a profit without actually selling anything or running a product. So you can see in 2013-2014 all the way up until this year, how much they have sold and how much institutional sales they’ve made.

XRP has been showing massive weakness as the cryptocurrency is being sued by the SEC. Its price tumbled significantly from $0.65 to $0.21 in four days, a crash of 67%.

Meanwhile, other altcoins also corrected significantly in the past 24 hours as investors probably fear that XRP may not be the only coin on the SEC’s radar.

Read more XRP Ripple news on Investing.com

How Much Will XRP Be Worth?

In the long term, the famous crypto analyst with 77.8K followers on Twitter expects XRP to reach a price of $25-$30. But before this happens, Credible Crypto predicts a drop in the market of up to 30 per cent, adding: “You have the right idea for the pullback region. Many alts will dump hard but XRP/BTC is on support so it may not be affected as badly as other alts.”

Such a plunge in the crypto market could present great buying opportunities for new investors: “To be able to buy $XRP anywhere between $0.38-$0.55 is a blessing. If you get this chance, you best take it. No guarantees we get the lower end of this range, so DCA’ing down is your best bet.”

Earlier this year, Will Meade, a former Goldman Sachs employee and billionaire hedge fund manager, made his first crypto purchase, buying XRP and expecting it to soar in value in the near term: “I made my first crypto purchase ever this week $XRP Ripple. I know very little about crypto but I believe a rising tide lifts all boats, so if Bitcoin goes back to its all-time highs then XRP should as well and that would be a 15 bagger 1,500 per cent.”

Based on his estimates, such an increase would take XRP all the way up to $3 in the foreseeable future, according to Capital.com

Rating agency Moody’s estimates that blockchain standards will expand by 2021. With XRP maintaining or improving its current position in the market, it’s viable to see movements above the $2 mark, especially if institutional interest continues to increase, according to Crypterium.com

 XRP And Ripple Facing A Big Dilemma With Damning Evidence?


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